Hungarian bank OTP is no longer planning a bid for HSBC Malta, MeetInc has learned. Sources familiar with the matter said the decision was likely taken after it was made clear by the government that it would prefer OTP not submit a bid.

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In public comments earlier this month, Finance Minister Clyde Caruana stopped short of naming OTP directly, but warned against handing control of a key part of Malta’s financial system to a bank with a “less than stellar reputation.”

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“We all remember what this country went through during its greylisting,” Caruana said. “In recent years, we’ve strengthened our reputation, so I expect that ultimately Malta will have a financial institution with a good reputation.”

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Caruana’s comments—widely understood as a reference to OTP’s perceived links to Russia—appear to have set the tone for the government’s stance on the sale. While no formal position was issued, those close to the process believe the message was clear enough to prompt OTP to quietly step back.

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The bank has made no public statement on the matter, but is no longer being considered an active participant in the bidding process. Its absence, along with APS Bank’s recent withdrawal, leaves the field wide open — and largely undefined. The only publicly known contenders at this stage are a local consortium led by the Azzopardi Group, Virtu Holdings and Lombard Bank CEO Joe Said, and German fintech giant RS2, though it is understood that other parties have also shown interest.

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APS Breaks Silence on Withdrawal

In a press conference held yesterday, APS CEO Marcel Cassar offered the first official account of the bank’s decision to pull out of the race for HSBC Malta. He said APS had spent less than €2 million on the bid, mostly on external advisors, and had moved quickly to exit after receiving “confidential information external to the due diligence process” that the board found “200% credible.”

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Cassar said the board met twice in quick succession and reached a unanimous decision to withdraw. He dismissed claims that the bank lacked the financial muscle or was constrained by pressure from its majority shareholder, the Church, calling such suggestions “totally unfounded.”

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He also confirmed that APS had invited the Malta Financial Services Authority (MFSA) to engage with the bank should it wish to better understand the reasons behind the decision — though no such request has been made to date.

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In his remarks, Cassar stressed that APS had been well-positioned to proceed with the acquisition, highlighting the bank’s financial readiness, shareholder backing, and a business plan it believed would have delivered benefits for both institutions and the wider Maltese economy. “We had accumulated financial resources, received strong shareholder and investor responses and lined up a business model, culture and vision that would have created benefits across the entire spectrum of both banks,” he said. APS, he added, remains focused on growth and scale, and will continue exploring new strategic opportunities.

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